Effects of Electronic Banking in International Business Environment and Performance by Diamond Trust Bank Limited in Kenya

Abstract

International business helps countries to exchange goods between countries as well as exchange of technologies, getting products cheaper than producing them domestically. The concept and adoption of e banking in our commercial banks has enhanced international banking by providing a platform for corporate to do business worldwide through electronic funds transfer modules. The trading of cross currencies has remarkably enhanced business transactions.The purpose of this study was to establish effects of electronic banking in international business environment and performance of Diamond Trust Bank. The study employed a case study approach as its research design method, in which eight (8) departmental and branch heads were interviewed by use of an interview guide, information which formed the primary data of the study. Secondary data comprised of internal memos, reports and newsletters as well as graphical analysis of transactions and revenue so earned. Data was analyzed using content analysis. The study established that electronic banking was positively influential to bank performance. Electronic banking generates a sizeable amount of revenue for the bank while on the other hand aiding in cost cutting through reduction of manpower use at branches.It was found that unanimously respondents conveyed that electronic banking was both convenient to the client and the bank. As such there is heavy investment in I.C.T. by D.T.B. as evidenced by the recent system upgrade deemed to be faster and customer friendly. The study also showed that management has a big role to play in form of support as well as in meeting gaps by both client and staff. Technology was found to have a very big role to play whereby any failure would ultimately influence use and eventually revenue earned. The element of training of both staff and customers is also very key in order to minimize knowledge gap. Recommendations were also made on how best to combat the shortcomings with an alternative of research on what competitors are offering in order to learn from them. In general e banking is a broad subject which has been reviewed by many and its effect are vast in the banking industry and as such there is still room for further study.